The latest survey from Family Business United has identified the key challenges that are being addressed by family business leaders in board rooms up and down the country. The past year has continued to present plenty of challenges to family business owners throughout the UK and despite their response it is still a difficult environment for many, with prevailing uncertainty adding to the burden. We wanted to get a picture of the issues that are facing family businesses to highlight the complex agenda that is being addressed. The results are in and whilst some of the key challenges are not surprising, there are some challenges that are seen as more important than may have been expected. The 2021 Family Business Survey not only sought to look at the key issues that are keeping family business owners awake at night but also looked at some specific areas in more detail: sustainability, recruitment, hybrid working, investment and being a family business during the pandemic. The Top Challenges Facing UK Family Businesses Today: The economic climate (53%) Recruiting, retaining and motivating staff (51%) Rising costs of labour and raw materials (47%) Supply chain disruption (42%) Regulation, red tape and legislation (39%) Challenges associated with Brexit (36%) Environmental issues (30%) Sustainability and the road to net zero (30%) Cyber security (28%) Marketing, PR and social media (23%) Domestic competition (23%) Profitability and sustainability of the business (21%) As Paul Andrews, Founder and CEO of Family Business United explains, “These results give us a broad indication of the challenges being faced by family business owners as the pandemic continues to have an impact. It is well documented that the past year or so has been incredibly challenging, even for those family firms that have continued to operate throughout, and the boardroom agenda is packed with challenges that do need to be addressed.” “Along with the ongoing issues associated with the economic climate, Brexit and the pandemic there are specific issues coming to the fore around supply chains, rising costs of raw materials and labour and in some cases labour shortages.” “Family firms have shown their resilience and entrepreneurship over the last year or so and continue to be innovative in their business decisions but it is clear that there are concerns. Cash is, and always will be king, and with the need to repay loans, deferred rates and tax bills, and the return to work for more employees, it is clear that there are longer term concerns around profitability and sustainability.” “Much talk is going on around climate change and the environment and these issues are on the agenda, which is great to see, and we are also seeing more active consideration on business practices and changes that can be made to make a real difference too.” “Clearly people are important to the family business and in many ways the workforce are looked upon as the extension of the family but plenty of people issues are on the agenda around the UK. Businesses have spent a lot of time and effort engaging with staff, communicating with them and managing new ways of working but as restrictions ease and the numbers returning to the office rise, challenges around safety in the office, balancing working from home and in the office, hybrid solutions and continued engagement with the workforce are high on the list of things to address.” “Looking to the longer term, businesses are also investing for the future with many focusing on strengthening management and the board so that the business has the best people on board to drive the business as they build forward. Within the family, identifying and developing future leaders as part of the succession planning process still needs to be done. During the pandemic, many senior family members have got more involved in the business and not stepped back as previously planned, and these plans need to be revisited by some firms too and new plans/timetables put in place for a smooth transition to the next generation.” “However, speaking to many leaders from multi-generational family firms it is clear that history is helping as they have had to deal with significant challenges in the past, and as many see themselves as custodians of the business for future generations, it is great to hear them talk positively and optimistically about the future too with many believing that being a family business has helped over the past year or so and with aligned purpose and values, will undoubtedly help going forward. It is not going to be easy and there are inevitably challenges ahead, but the agenda is set and there is an incredibly positivity and resilience to survive and thrive as family businesses look to the future and address their own family business agenda, one step at a time,” concludes Paul. As Lyn Calder, Edinburgh Managing Partner & Head of Family Businesses at Anderson Anderson & Brown, sponsors of the 2021 Family Business Survey adds, “Family businesses are the engine room of the national economy supporting the nation through the provision of jobs, generation of income and wealth creation. They are also significantly involved in the place in which they do business and are a real force for good in communities the length and breadth of the UK” As Lyn concludes, “Many family firms across the UK have faced significant challenges before, especially those that have passed down for many generations and undoubtedly will continue to do so. The business environment is changing, and will continue to change as firms seek to embrace their responsibilities on their sustainability journey, but they will continue to react, adapt and embrace change to meet the challenges they face and to continue to be a force for good and make a significant contribution to the recovery of the nation. The survey clearly identifies the challenges faced by business owners around the UK and helps people appreciate that they are not alone in facing these challenges and it is great to be able to further understand the concerns of this rich, vibrant and diverse sector of the economy.” Download and read the full report below:

Mackie’s of Scotland is a fourth generation family business who have been farming at Westertown Farm in Aberdeenshire since 1912. Initially specialising in milk production for the majority of the 20th century; the family business evolved into making ice cream in 1986 and the farm now use the fresh milk from their own dairy herd to make real dairy ice cream. The company is currently run by three siblings; Managing Director, Mac Mackie with his sisters Marketing Director, Karin Hayhow, and Development Director, Kirstin Mcnutt. Mackie’s employ around 90 members of staff – including many other family groups working together within the business. Mackie’s of Scotland has become one of Scotland’s most iconic brands – listed in the top 10 Scottish food and drink brands. Proudly known as Scotland’s number one ice cream, it is also firmly established as one of the top five take-home ice creams in the UK. With the Traditional and Honeycomb flavours being all-time favourites in every Scottish family, Mackie’s ice cream is now available in all major supermarkets across the UK and is exported worldwide with sales of more than £2m in Asia alone. In 2009 Mackie’s diversified its business in a joint venture with the Taylor family, renowned potato farmers in Perthshire to make crisps and popcorn which are now available in over 25 countries with more than 20 different flavours. In 2014 the company expanded once more to create a chocolate factory on the farm – the range of chocolate bars include: Traditional, Honeycomb, Orange, Mint and Dark Chocolate are available in a number of UK supermarkets as well as Mackie’s new online store. The company also makes packaged ice, ingredients like honeycomb and sauces. Mackie’s also has its own parlour in Aberdeen, named 19.2, where it can offer a huge range of flavours and interact with its clients for immediate feedback on new products. The parlour was opened in 2017 and was named 19.2 to represent the number of miles it is from the family farm in Westertown. Mackie’s recently revealed its biggest rebrand in 30 years which includes new packaging and a new website, focussing on the company’s family farming heritage and its product’s ‘dairy difference’. The brand is an innovative thinker when thinking about its carbon footprint and eco-credentials. Its ‘sky to scoop’ ethos sees the brand create everything, from dairy products from its own herd to its packaging, as well as other ingredients on site. Renewable energy is a cornerstone of Mackie’s environmental policy and the climate positive company aims to become 100% self-sufficient in renewable energy. This year a £4.5m project is underway to install a low carbon refrigeration unit, adding to the on-site renewable energy production mix that includes four wind turbines, a bio-mass energy plant and 10 acre solar farm. It was great to be able to visit their Ice Cream Parlour in the centre of Aberdeen as part of the 2021 Scottish Family Business Road Trip and we have to say, the ice cream was unbelievably good!!

Succession planning is often cited as one of the key challenges facing family firms. In many cases it is the elephant in the room and simply not a topic that is discussed. In this session we will take a look at the issues around succession planning, consider some of the options available and explore ways to bring the topic of conversation to the table. Succession may be associated with difficult conversations but it doesn’t have to be like that. This session is being presented by Darryl Bates-Brownsword who is a UK Partner of Succession Plus, specialists in providing proactive, focused and strategic advice for SME owners to manage strategic Business Succession and Exit Planning. It provides a fresh perspective on succession and exit planning with a framework for engaging in the right conversations. Darryl is a dynamic, driven Business Mentor and Coach with over 20 years of experience and passion for creating successful outcomes for founder-led businesses. He is a great connector, team builder, problem solver, and inspirer — showing the way through complexity to simplicity. He has built 2 international multi-million turnover businesses; one now operating in 16 countries. His quick and analytical approach cuts through to the core issues quickly and identifying the context. He challenges the status quo and gets consistent, repeatable and reliable business results. Originating in Australia, Darryl’s first career was as an Engineer in the Power Industry. Building businesses bought him to the UK in 2005 where he quickly developed a reputation for combining systems thinking with great creativity to get results in challenging situations.

Every family business starts out with a plan and it is always great to find new family firms with an entrepreneurial story that has grown into something special. Paul Andrews spoke to Deepesh Vishaldeep, the second generation now working in this retail family business to find out more. When was the business founded? The business began in the 1970’s in the garment manufacturing trade. My parents used to make clothes for larger retailers such as BHS and C&A. What does it do? We started off in women’s fashion clothes and to this day we still have a retail shop in East London which we opened in the early 90’s. This was started by both of my parents and my brother and I joined in and around 2004. since joining the business has expanded into different sectors although the business remains family owned. Today we operate from 4 different retail shops (all on the same road and few doors apart). Each shop has a different purpose – a Womens Fashion Store, a Gift Shop, a Cookware Shop and a shop specialising in Indian spices. We also operate an ecommerce business selling cookware items and a newly established digital marketing business too. What generation are you and what are your first memories of the family business? I am one of the second generation, and the first memories of the family business would be helping my parents at our garment factory in Whitechapel when I was around 10 years old – I remember watching my parents work hard, seven days a week. Are there any other family members working in the business? Yes, there are four of us – my Mum, Dad, brother and myself. How important was the business in your life as you grew up? Growing up the family business was our life, and it still is, although we as a family have been able to take time away from the business as we’ve grown. However, the importance of working around the business has always been there, it’s like our forever little baby and because it is family owned, we are in charge of the day to day operations. We do have staff too but the business isn’t ever left only to our staff as we have been serving the community for many years and our customers have been a major part of our history and it is the personalised service from us as a family that has made, and continues to make a difference. What was your journey into the family business and what do you do now? I graduated in 2004 with a 1st class BA Honours degree and whilst I was studying at university I also worked at Currys (Dixons group). I worked there for almost 7 years, started working in the warehouse, taking deliveries in etc, then worked my way up to a salesman on the shop floor. I did really well selling and was quickly promoted to senior sales, then department manager and then became a trainee store manager. When I graduated from university I wanted to join the family business with plans to help it to expand. There was a shop vacant a few doors away from my parents, and with the help of mum and dad we acquired a 40-year-old running gift shop. I started my own business from there. 7 years into the business we needed more space, so we bought retail space down the road totalling approx. 4000spft whilst the other two shops continued trading. As a second generation business, what has helped your firm stand the test of time? I think it is definitely down to financial and moral support from our parents, their experience and guidance that has been the backbone of our business. We are all in it together, be it in our own departments but we are able to support each other when needed. What values are important to the family and the business? Honesty in dealing with suppliers and customers, hard work and no ‘get rich quick’ tactics! My parents still add value, be it old school values but these are important and probably will be passed on to the next generation. Do you build the family ownership into the marketing and brand narrative and if so, how? Not intentionally but being around for decades and dealing with the same customers and their next generations, the family ownership is definitely why people come to us, they’ve known us and come back for that reason. What do you think makes working in a family business special? It can be special but it doesn’t work for everyone. Luckily it has been special for us, we have grown and continue to grow the family business and are fortunate to have parents that are on the same wavelength. Thankfully disagreements are very rare, and it gives us time together as a family during the day. Are there any disadvantages associated with working in a family business? As mentioned above, disagreements can be a disadvantage and work pressure can be taken home but luckily our disagreements are minimal, and we try not to discuss work at home. Have you taken any particular steps in terms of governance to help protect the business for the future? We have been moving with the times and have had a web presence for the last 12 years. We were one of the first businesses to supply Ebay and Amazon with daily deals. We have our own brand of cookware products under Ignite Cookware so we have taken steps to make sure the business will still be standing for the next generation – if they choose to continue it. Our focus remains on the online side and during the lockdown’s growth was 12 fold on the online side and it was exciting to see the potential – I even completed my professional diploma in digital marketing to help me understand the marketing side of the online business. I continue to implement this and have seen some great results. I have also set up my own digital marketing business to help others grow online. I am also a part of Digital Boost (a charity) where I help people with a 1hr free consultation on the areas they need help in within digital marketing. Is there a next generation in the wings? There is but my son is only 4 so who knows what the future will bring! What advice would you give to anyone in the next generation considering joining their family firm? Be in it for the long run, keep work life and family life separate and most importantly listen to the more senior members – it doesn’t mean they are always right but there is always an in-between! If you could talk to your younger self before you joined the business, what would you say? Should have gone on a world tour before or taken a year out after graduating! I am happy with every aspect of my life within the family business, we can say it was destiny and it was always going to be different to working for someone. My younger self saw the family business as routine, saw my parents work long hours and long days without a break, that was the norm then but luckily today we are able to spend time away from the business. If you could sum up the family business in three words, what would they be? Vibrant, Futureproof, Hard work. Find out more by visiting www.ignitecookware.com

Assured Same Day Couriers was Founded in November 2019, started trading January 2020. It is a nationwide same day delivery company with access to 3000 vehicles from motorbikes to artic trucks which transport anything from urgent legal documents to camera equipment, stage props to medication and building materials. Paul Andrews spoke to founder Peter Lloyd to find out more. Tell me a little about the history of the business? After a career of 20 years at Thomas Cook Airlines which went bust in Sept 2019, I found myself out of work, my wife worked part time in charity retail but she quickly went full time! In the October I got a job for a same day delivery company as a Transport Co-ordinator. 5 weeks later I was out of work again as the owner decided to close the business. With 2 young children at home 2 and 4, my wife and I decided to start our own same day delivery business. I would be working at home, looking after the kids whilst setting up and building the business. What generation are you and what are your first memories of the family business? Although this is a new family business, I am not new to a family in business together. My Great Grandad started a Funeral Directors mid 1930’s which lasted 3 generations. Our house also had a chapel of rest and Dad would get called out 24/7 which always seemed to coincide with when we sat down for dinner together or when we were all together as a family. We were always around the business. Funeral cars at home, families of deceased coming round to arrange the funerals… One thing I learnt very quickly is the hard work that is required to go in to make your own business a success. Are there any other family members working in the business? Yes, my wife Emma. What do you do now? My main role now is booking in all of the deliveries, on the phone speaking to customers. Once the working day is complete I then catch up on all the paperwork involved. There is a lot of work going on with advertising online/social media. We have also just signed a sponsorship deal with Newport County FC where we sponsor one of their strikers. What values are important to the family and the business? Honesty and to be the best you can be. We teach our children to be honest with us and be the best they can be. An example is with my sons homework – if its difficult and he’s struggling to understand, its ok. All we ask is that you try the best you can. I also use these values in work. I am also honest with customers. Things can change quickly out on the roads and not always in our favour. I tell the customers straight, and don’t try and cover anything up. Customers know when something isn’t right so I always like to have a Plan B! What do you think makes working in a family business special? It brings the family close. My wife and I like the fact that we are self-sufficient. We rely on ourselves. Are there any disadvantages associated with working in a family business? I can honestly say that there is no disadvantage that I have come across. What advice would you give to anyone considering joining their family firm? Be prepared for it to be on your mind 24/7. There are no days off! If you could sum up the family business in three words, what would they be? Transparent, Flexible, Fun. Find out more by visiting their website here

As a family owned British Countrywear brand, Hoggs of Fife started making top quality leather footwear for the local Farming and Fieldsports community over 130 Years ago and have gradually built the brand and extended the collections so that today, they have a great reputation for providing hard wearing, good value clothing footwear and accessories across the globe. Paul Andrews spoke to fourth generation Managing Director Robert Gibson to find out more. When was the business founded? 1888 What does it do? We provide good value and fit for purpose clothing and footwear, predominantly for people who live and work in the countryside, but really for anyone who is enthusiastic about outdoor life. Tell me a little about the history of the business? The business was started by Andrew Hogg, a cobbler, in the small Fife village of Strathmiglo. Initially he made boots and shoes for the country folk of Fife, but soon this expanded to all corners of the UK, as he was an early pioneer of the concept of supplying goods by post. After his passing (in 1928), the business evolved into high street retailing, and then in the 1970’s, responded to a demand from other retailers, by opening its own trade business. Clothing had been added to the Hoggs of Fife product range in the 1950’s, so this combination of hard wearing country clothing, as well as the established range of footwear, became very popular with country retailers across the UK. What generation are you and what are your first memories of the family business? I am 4th generation. I guess my first memories are when my father would bring home boxes of catalogues, for us to ‘stick and stuff’ before being delivered to the post office for despatch to the thousands of customers on the company’s database. I also remember the beginnings of our Trade business, when I worked helping to pick orders in our very first warehouse (which was a disused cinema, whose only claim to fame was that it had held the Scottish premier of the film Brigadoon!). I remember my father telling me how important it was that everything carrying the Hoggs of Fife name, whether it be the product or a catalogue, should be fit for purpose and presented professionally, with all the details correct. Are there any other family members working in the business? Although she hasn’t settled on a career path yet, my eldest daughter has begun working part-time in the business. How important was the business in your life as you grew up? To be honest, in my early years, the business was more ‘something my dad did’ and living on the family farm, I was influenced more by farming, as a child. Of course, this background was to help enormously in my understanding of the wider country market, as my interest in the business developed later on. What was your journey into the family business and what do you do now? I studied with a local accountancy firm and, on leaving, took up a supposedly temporary job in the business, and never left. I got the bug! I’m now the 4th generation of the family to run the business. As a long standing family firm, what has helped your firm stand the test of time? Although we realise that the value of a brand name stands a business in good stead, we have never tried to take advantage of this fact by becoming greedy. We have always believed in making sure that the price we charge properly reflects the worth of the product. In some ways, our brand name stands for honesty, fairness and trust and hopefully this is how our customers view us. What values are important to the family and the business? As stated above, honesty and trustworthiness are important to us. At Hoggs of Fife we also have local responsibilities to make sure we keep safe the jobs and livelihoods of the people who work for us, as well as wider responsibilities to try and take the correct environmental and ethical decisions. Do you build the family ownership into the marketing and brand narrative and if so, how? Only very marginally, as we still think talking about the quality and value of the product is what is most important. It’s not really in the Scottish psyche to talk about yourself! More recently however we have begun to understand the importance of letting people know who we are, and trying to share our heritage with our customers, by including this is our point of sale, catalogues and social media. What do you think makes working in a family business special? Not having to be concerned about following corporate rules and procedures, just for their sake alone. Everything we do has to have a clear reason and end goal. Are there any disadvantages associated with working in a family business? There can be long hours as well as extra responsibilities to other people such as to our employees. Have you taken any particular steps in terms of governance to help protect the business for the future? We make sure that we are not in debt and never take risks with the future of the business, always growing organically in small manageable steps. Maintaining a good reputation in the marketplace, for the quality and endurance of our products, is of course the best way to assure the future of the business is looked after. And having the right people in place in key positions is also vital. Is there a next generation in the wings? There may be, but it is too early yet to say. As mentioned above, the eldest of my daughters is working part time in the business, and my youngest is in the middle of a business degree, but it is too early yet to know where their careers will take them. What advice would you give to anyone in the next generation considering joining their family firm? Be prepared to learn on the ‘shop floor’ about how the business works, and to experience as many aspects of the business as possible, so that you have the respect of all your colleagues in the business. Remember also that without loyal customers, there would be no business, and never take our customers for granted. If you could talk to your younger self before you joined the business, what would you say? Be prepared to learn from those already in the business, and don’t think you automatically ‘know it all’ Work hard but also try and leave business at work, and have time to unwind and relax. If you could sum up the family business in three words, what would they be? Effort, achievement, satisfaction.

Prior to the onset of the global pandemic Dr Linda Murphy (Lecturer – Management, Cork University Business School) and Dr Giovanna Campopiano (Director of the Centre for Family Business at Lancaster University Management School) had begun a research project into the organisational resilience of family firms. The topic is in the spotlight even more in light of ongoing events and here they share their initial findings from the research with us and explore some of the ways that family firms have been resilient throughout these challenging times.

Linking in with Yorkshire Family Business Day 2021 this family business forum for the Yorkshire family business community seeks to celebrate the sector and provide insights, learning and best practice to enable family firms to survive for generations to come. Paul Andrews was joined by David Kerfoot MBE DL, Jason Rockett (Potter Space) and Fergus Bailie (Bailie Group). David Kerfoot MBE DL, High Sherriff of North Yorkshire David founded The Kerfoot Group jointly with his wife Elizabeth in 1980 using £300 capital which grew to sales of over £80 million on a global basis exporting to over 50 countries. The company processed, packed and distributed vegetable oils on three sites in the Port of Goole with a subsidiary in Poland and a sales office in New York. The Group was sold to French agricultural giant Avril in 2015. David is a passionate social entrepreneur and has a long history of community service. Currently Chairman of the LEP for York, North Yorkshire and the East Riding, Chairman of the Pendragon Community Trust which he helped found 12 years ago to build a facility for the multi disabled, trustee of a food bank and founder of an initiative called Smile for Moldova which supports people in the poorest country in Europe. He is also a patron of the Samaritans and a lifelong activist in the Prison Service as well as being a trustee of Breadline. He is a Deputy Lieutenant of North Yorkshire and High Sheriff of North Yorkshire for the year 2020. Jason Rockett, Managing Director of Potter Space Jason is the new, non-family Managing Director of Potter Space and brings a wealth of property experience to the company, having operated at a high level within the sector for more than 25 years. He joins from Gentian Development Group, prior to which he was at Scarborough Property Group and, more latterly, Sheffield United. Jason spent over ten years with the Scarborough Property Group, ultimately as Development Director responsible for the growth and management of a £350 million+ development portfolio within London, the South of England and Wales. From a standing start with Gentian, he built a diversified £25million+ portfolio of completed projects and created a development pipeline of more than £50 million. Prior to that he was CEO of Sheffield United where he was responsible for the growth and diversification of the club’s off-field revenue streams, as well as creating an international presence across three continents. He will share an insight into the family business and what inspired him to join the family firm. Fergus Bailie, Group CEO, Bailie Group (formerly known as the Baird Group) Family-owned communication specialist The Bailie Group has recently revealed a fresh identity and a completely new name, as the 158-year-old firm eyes a £20 million rise in turnover, by the end of 2021. Group CEO Fergus Bailie will share his thoughts on entering the family business and how purpose and values underpin all that they do. Their intention is to continue with a programme of internal investment and acquiring companies which meet their philosophy and purpose, for the benefit of future generations. As well as hearing their family business stories, key learnings from the session include: – The need for clarity of purpose Communication at all levels of the organisation The need to be adaptive and flexible as a business The need to talk (customers, suppliers, staff, other stakeholders) Help others and invest in the long term Listen to the people around you Take account of the wellbeing of others Keep checking in on staff.

Family Business United founder Paul Andrews interviews Stuart Dantzic, the second generation Managing Director of Caribbean Blinds UK Ltd to gain an insight into the family firm through the eyes of the next generation. As well as appreciating the role that Stuart has today and his clear pride and passion for the products they make and their plans for growth going forward, we learn about the steps taken by the next gen as they took their first steps in leading the family business after the baton was passed to them by their parents, the founders of the business.

John Broons interviews another Australian family business and gains some great insights that we can all learn from.

Peter Leach is one of the leading family business experts globally and here he looks at why it is important to have a mix of family and non-family on the board of a family business and at the role of non-executive directors.

A major challenge that family business leaders face today is inefficient and ineffective succession planning. There is every reason to get it right, but too often the process is not given enough consideration. Have you ever thought why this might be the case? Listen to Wayne Rivers from The Family Business Institute as he explains the Top 9 reasons why family businesses struggle with succession planning.